The Hindu Business Line : Elecon may enter shipping, ports biz

Gujarat, Feb.20 Engineering products and services major Elecon Group has diversified into hospitality business and is looking at shipping, ports and SEZs as its next destinations.

The NRI-rich Kheda district and adjoining areas in Charotar region of central Gujarat is all set to get its first luxurious resort with five-star facilities by mid-2008. The resort has been developed by Elecon in a 15-acre area at a cost of Rs 40 crore to tap the huge potential in hospitality business due to large number of non-resident Gujaratis (NRGs) visiting their native places each year.

The resort is being constructed around the theme of rural Gujarat, by Elecon group company Emtici Engineering, complete with spa and hotel facilities, Mr Prayasvin B. Patel, Chairman and Managing Director, told Business Line here.

Re-bid

However, the company would consolidate its business before expanding this enterprise into other areas. Mr Patel also said Elecon would be bidding again for the acquisition of Alcock Ashdown (Gujarat) Ltd, or AAGL, as and when the Gujarat Government re-starts the process of divestment. “We will definitely reconsider bidding again.”

Last year, the State Government had stalled the divestment plans for a second time when the formerly British-owned Bhavnagar-based shipping company, now wholly-owned by the State Government, was put on the block. Elecon and ABG Shipyard were the final bidders. The government had reportedly received bids for Rs 169 crore against the reserve price fixed to nearly Rs 350 crore, even as the company had turned-around with a Rs 1,500 crore order book and booming business.

Alcock Ashdown has two shipping yards at Bhavnagar and Chanch (Amreli) districts, spread over 27 acres and 10 acres respectively.

New businesses

Mr Patel said Elecon was also exploring the possibilities in port and SEZ-based engineering facilities in Gujarat and other States, provided these gave logistical advantage. It was also looking at acquiring ports in India and abroad to get an entry into foreign markets in a big way, he said, while declining to go into details.

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